The general theme across most major soft commodities was that volumes were very light in anticipation of the USDA’s end-of-month reports on quarterly grain stocks and prospective plantings due out this Friday. Wheat finished down 2.5 USc/bushel at 727.25. Another weather system is expected to cross the western plains over the weekend and early April, which will help soil moisture. In other world news there were offers taken to an Iraq wheat tender and traders noted that Australian wheat was the cheapest offered. Corn finished up 6.25 USc/bushel at 732.5,mainly due to thoughts that ethanol demand is on the increase, and also another round of moisture in key corn regions delaying planting, which added further support. Soybeans finished down 3.5USc/bushel at 1437. Thoughts that China’s old crop soybean demand may have been overstated given Feb/March shipments were down have weighed on the market.
May cotton futures eased on more talk of release of state reserves from India and China at 86.46Usc/Lb. There were also reports that the US plantings look higher than expected however volume remained relatively low as traders look to Thursdays USDA before committing themselves to more sizable positions. There was one positive voice in the market where a report from Macquarie Group signalled that they still believe in a 100 cent/pound cotton price before end of year.
Domestically, our local grains market have continued to come under pressure from the markets pre-emptive moves ahead of this USDA planting intentions report to be released on Thursday night. The wet weather over the weekend went a little way to filling the moisture gap ahead of winter crop planting. The wheat markets are continuing to slide, barley demand continues to be non-existent, whilst sorghum continues to come under pressure due to harvest selling pressure and the fact consumers are buying hand-to-mouth with the expectation that sorghum values will need to fall to become competitive in rations again. Later sorghum crops have benefited from improved growing conditions in comparison to earlier crops. Canola has received a kick, from the announcement that China will again begin taking Australian Canola. This led to a local increase of $13/mt overnight Thursday night and heavy grower selling on Friday. Values today remain strong and we strongly encourage growers to consider pricing old crop canola in the system as new crop values are $60-70/mt below old crop values. The chickpea market continues to hold slightly below grower selling levels, the information from the subcontinent continues to puzzle those in the pulse business regarding demand for Aussie peas ahead of and during Ramadan. Today we are seeing $485-490/mt delivered Narrabri, which was non-existent last week and it’s anybody’s guess whether this demand will stick around or disappear as small tonnages of chickpeas are continuing to trade.
AgVantage has strong demand for new crop mungbeans and currently have hectare contracts available for the upcoming harvest. We strongly recommend giving us a call to discuss the types of contracts available for this season.